VZCZCXRO6196
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHBW #1027 2751527
ZNR UUUUU ZZH
R 011527Z OCT 08
FM AMEMBASSY BELGRADE
TO RUEHC/SECSTATE WASHDC 0485
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPARTMENT OF COMMERCE WASHINGTON DC

UNCLAS BELGRADE 001027 
 
SIPDIS 
USDOC FOR 4232/ITA/MAC/EUR/OEERIS/SSAVICH 
 
E.O. 12958: N/A 
TAGS: ECON EINV SENV SR
SUBJECT: SERBIA: ENVIRONMENT AND SPATIAL PLANNING MINISTER KEEN ON 
ENVIRONMENTAL COOPERATION, BUT PESSIMISTIC ON RESTITUTION 
 
SUMMARY 
------- 
 
¶1.  During their September 30 meeting, the new Minister for 
Environment and Spatial Planning Oliver Dulic reiterated to the 
Ambassador his request for U.S. support in formulating and 
implementing environmental and land legislation.  Dulic also offered 
a number of suggestions for his ministry and the Embassy to raise 
public awareness of environmental issues.  Dulic was not optimistic 
that land restitution issues would be resolved in the near future, 
citing the Finance Ministry's inability to compensate claimants 
given the current budget deficit.  END SUMMARY. 
 
ENTHUSIASM FOR COOPERATION ON ENVIRONMENTAL ISSUES 
--------------------------------------------- ----- 
 
¶2.  On September 30, the Ambassador met with the new Minister of the 
Environment and Spatial Planning (MESP) Oliver Dulic (DS), whom he 
had met with frequently while the latter was Speaker of Parliament 
in the former administration.  In Dulic's new role, he covers 
environmental, land, construction, and restitution legislation. 
Dulic appears to be the link between the Economy Ministry which 
would prioritize construction and land development projects, the 
Finance Ministry that would fund them and the Infrastructure 
Ministry which would implement projects. 
 
¶3.  Dulic was enthusiastic about U.S.-Serbian cooperation on 
environmental issues and had asked for U.S. assistance prior to the 
meeting.  In September 2008, Dulic sent a letter to the Embassy 
requesting support for the ministry's land and environmental 
initiatives.  In the letter and in the meeting, Dulic proposed a 
joint Ministry-Embassy environmental event centered on Al Gore's 
book "An Inconvenient Truth."  (MESP has recently ordered 1,000 
copies of book.)  Dulic proposed ways in which the Embassy, MESP, 
and the Ministry of Education could work together to instill 
environmental awareness and responsibility in Serbian youth.  Dulic 
said his ministry was interested in hearing from and working with 
potential U.S. companies looking to invest in recycling, waste 
management, and related businesses. 
 
NO LAND RESTITUTION SOLUTION IN SIGHT 
------------------------------------- 
 
¶4.  Dulic was pessimistic that Serbia's restitution issues would be 
resolved anytime soon.  Although his ministry will author 
legislation and change land bylaws, the Finance Ministry will first 
have to determine the method of restitution and finance it. 
Specifically, the Finance Ministry will need to decide if and how it 
will compensate landowners for disputed land.  Since Serbia is 
suffering a severe budget deficit, Dulic does not think it will be 
financially viable for the government to compensate restitution 
claimants.  The Ambassador stressed the need for a fair and 
equitable land law and underscored the importance the land law would 
have on attracting foreign investment. 
 
COMMENT 
------- 
 
¶5.  The Embassy's relationship with Dulic in his previous position 
was excellent and he indicated his interest in continuing 
cooperation in his new role.  Dulic proactively sought out Embassy 
assistance, while several of his DS colleagues continued to cling to 
the "no contact policy" of the Action Plan following Kosovo's 
declaration of independence.  Joint projects with the ministry, 
especially in the environment area, will address one of Serbia's 
many serious deficits.  Unfortunately, despite Dulic's desire to 
quickly bring to a close restitution issues, he is resigned in the 
short term that the complexity and cost of resolving land ownership 
issues will slow Serbia's progress.  End Comment. 
 
MUNTER